Growing number of states are imposing new fees on electric vehicles
#1
Growing number of states are imposing new fees on electric vehicles
Seems fair to me.
States yanking electric-car incentives and slapping on new fees to pay for infrastructure
For drivers of electric cars, going green is starting to take more green.
A growing number of states are imposing new fees on electric vehicles as officials scrounge for ways to pay for infrastructure projects they say are long overdue. At least five states, including California, passed bills targeting the cars this year, bringing the total number with fees on the books to 13. The charges generally range from $100 to $200 a year.
"Safe and smooth roads make California a better place to live and strengthen our economy," Gov. Jerry Brown said in a statement when the bill passed this spring. "This legislation will put thousands of people to work."
The passage of the fee in California — home to one of the most prominent names in electric vehicles, Tesla Motors (TSLA) — underscores the shift in sentiment toward the technology. Many states initially encouraged drivers to make the switch to cleaner cars through tax incentives and other measures. But now, cash-strapped and pothole-ridden, states are asking the eco-friendly to pay up.
"We see this as a concerning trend," said Gina Coplon-Newfield, director of the electric vehicles initiative at the Sierra Club. "We certainly want to see funding raised to support roads and bridges and transit. … But penalizing electric vehicle drivers is not the way to solve this problem."
The shift comes just as Tesla gives the green light for its first mass-production car, the Model 3.
Proponents of the fees say the issue is one of fairness. Since 2013, 24 states and the District of Columbia have moved to raise their gas tax, including five states just this year, according to the National Conference of State Legislatures. In California, a 12-cent hike in the gas tax is expected to pay for nearly half of the state's $52.4 billion infrastructure package to repair roads and alleviate congestion.
© Provided by CNBCBut since electric cars don't need gas, those drivers don't pay the tax — even though they use the same roads as traditional cars. California's new $100 annual fee on electric vehicles will go into effect in 2020 and is expected to raise $200 million over the next decade."This landmark legislation offers counties real hope to catch up on a significant backlog of deferred maintenance," California State Association of Counties President Keith Carson said in a statement. "We're finally going to be able to start fixing potholes, improving pavement and making sure our bridges are structurally sound."
But environmental advocates worry the fees could curtail electric vehicle sales. Edmunds.comestimates the cars account for just 0.6 percent of the auto market. Sales growth has slowed dramatically, from 227 percent in 2013 to just 5 percent last year, according to the data.
In addition to the fees, the Sierra Club counted seven states that have eliminated rebates for purchasing an electric vehicle. Coplon-Newfield said sales plummeted in Georgia after the state enacted new ownership fees and got rid of the incentives.
Also facing extinction: a $7,500 federal tax credit for buying an electric car. The credit expires once manufacturers sell 200,000 vehicles, and major automakers such as Tesla, General Motors (GM) and Nissan are on track to hit that limit within the next few years. But advocates are concerned that the credit could wind up on the chopping block even sooner amid sweeping efforts to simplify the tax code.
Genevieve Cullen, president of the Electric Drive Transportation Association, said her organization is willing to help fund infrastructure projects. But she said the current fees are arbitrary. She pointed to the debate in Vermont, where a recent state government report instead recommends postponing electric-car taxes until they make up 15 percent of vehicles on the road. The report projected that would happen in 2025.
"Everyone needs to pay their fair share, but the fact is that we think it's premature to impose fees on a technology that's contributing to so many other national, state and local goals," Cullen said. "As part of a comprehensive fix of infrastructure funding, let's put everything on the table. … But in the meantime, to create impediments to a new technology that has a lot to offer seems not the best solution."
States yanking electric-car incentives and slapping on new fees to pay for infrastructure
For drivers of electric cars, going green is starting to take more green.
A growing number of states are imposing new fees on electric vehicles as officials scrounge for ways to pay for infrastructure projects they say are long overdue. At least five states, including California, passed bills targeting the cars this year, bringing the total number with fees on the books to 13. The charges generally range from $100 to $200 a year.
"Safe and smooth roads make California a better place to live and strengthen our economy," Gov. Jerry Brown said in a statement when the bill passed this spring. "This legislation will put thousands of people to work."
The passage of the fee in California — home to one of the most prominent names in electric vehicles, Tesla Motors (TSLA) — underscores the shift in sentiment toward the technology. Many states initially encouraged drivers to make the switch to cleaner cars through tax incentives and other measures. But now, cash-strapped and pothole-ridden, states are asking the eco-friendly to pay up.
"We see this as a concerning trend," said Gina Coplon-Newfield, director of the electric vehicles initiative at the Sierra Club. "We certainly want to see funding raised to support roads and bridges and transit. … But penalizing electric vehicle drivers is not the way to solve this problem."
The shift comes just as Tesla gives the green light for its first mass-production car, the Model 3.
Proponents of the fees say the issue is one of fairness. Since 2013, 24 states and the District of Columbia have moved to raise their gas tax, including five states just this year, according to the National Conference of State Legislatures. In California, a 12-cent hike in the gas tax is expected to pay for nearly half of the state's $52.4 billion infrastructure package to repair roads and alleviate congestion.
© Provided by CNBCBut since electric cars don't need gas, those drivers don't pay the tax — even though they use the same roads as traditional cars. California's new $100 annual fee on electric vehicles will go into effect in 2020 and is expected to raise $200 million over the next decade."This landmark legislation offers counties real hope to catch up on a significant backlog of deferred maintenance," California State Association of Counties President Keith Carson said in a statement. "We're finally going to be able to start fixing potholes, improving pavement and making sure our bridges are structurally sound."
But environmental advocates worry the fees could curtail electric vehicle sales. Edmunds.comestimates the cars account for just 0.6 percent of the auto market. Sales growth has slowed dramatically, from 227 percent in 2013 to just 5 percent last year, according to the data.
In addition to the fees, the Sierra Club counted seven states that have eliminated rebates for purchasing an electric vehicle. Coplon-Newfield said sales plummeted in Georgia after the state enacted new ownership fees and got rid of the incentives.
Also facing extinction: a $7,500 federal tax credit for buying an electric car. The credit expires once manufacturers sell 200,000 vehicles, and major automakers such as Tesla, General Motors (GM) and Nissan are on track to hit that limit within the next few years. But advocates are concerned that the credit could wind up on the chopping block even sooner amid sweeping efforts to simplify the tax code.
Genevieve Cullen, president of the Electric Drive Transportation Association, said her organization is willing to help fund infrastructure projects. But she said the current fees are arbitrary. She pointed to the debate in Vermont, where a recent state government report instead recommends postponing electric-car taxes until they make up 15 percent of vehicles on the road. The report projected that would happen in 2025.
"Everyone needs to pay their fair share, but the fact is that we think it's premature to impose fees on a technology that's contributing to so many other national, state and local goals," Cullen said. "As part of a comprehensive fix of infrastructure funding, let's put everything on the table. … But in the meantime, to create impediments to a new technology that has a lot to offer seems not the best solution."
#3
Seems fair to me, gas taxes pay for roads, electric cars use roads. Right now you are a tax dodger and a cheat if you drive an electric car
Okay just read about the tax situation in TN, they just passed a gas tax hike of $0.04 a gallon, along with raising the cost to register your electric car by $100(its $100 plus what normal cars pay, which is around $80 or something). Kind of surprised they started charging a fee for electric cars, since Nissan has a huge battery factory here along with the plant that makes the Leaf.
Okay just read about the tax situation in TN, they just passed a gas tax hike of $0.04 a gallon, along with raising the cost to register your electric car by $100(its $100 plus what normal cars pay, which is around $80 or something). Kind of surprised they started charging a fee for electric cars, since Nissan has a huge battery factory here along with the plant that makes the Leaf.
Last edited by Aron9000; 07-05-17 at 07:07 PM.
#4
Lexus Champion
Seems like a knee-jerk reaction to me but probably the easiest "fix" in tax-unfriendly states, especially to those politicians who do not like hybrid-electric or battery-electric vehicles.
#5
Lexus Fanatic
How? I don't buy that line. When you pay your electric bill (or any other utility bill), there are numerous Federal, state, and local taxes and fees included in it. Those taxes and fees sometimes inflate the actual bill by 30-40% or more.
#6
Lexus Fanatic
Okay just read about the tax situation in TN, they just passed a gas tax hike of $0.04 a gallon, along with raising the cost to register your electric car by $100(its $100 plus what normal cars pay, which is around $80 or something). Kind of surprised they started charging a fee for electric cars, since Nissan has a huge battery factory here along with the plant that makes the Leaf.
Also, mark my words. Electric car users will pay an electricity premium when they connect their electric car at their residence. Not at first, but once demand increases, people who charge their electric car will pay three or four times what it costs them now compared to other things they use in the house.
Upcoming Telsa 3 car owners will not get free supercharging whole Model S owners still will.
#7
Yeah it was kind of a joke, but those taxes on your electric bill go towards improving electric infrastructure, which if you have an electric car can be considered your "fuel" or energy source. When you drive a gas powered car, the money goes to the oil company, for new rigs, new exploration, to the shareholders if they make $$$, to make sure you can keep buying oil. The tax on gasoline goes towards maintaining and improving roads, if you drive an electric car, you are exploiting a loop-hole in our current tax structure for road maintenance and improvements. Personally I'm glad to see electric cars stuck with an additional registration fee.
I'd also like to see HOV lanes completely outlawed. They cause more congestion than they prevent. Here in Nashville, the interstates are constructed in a traditional 4 lane on each side manner, HOV lane is the far left. Nobody follows the rules, I drive in the HOV lane at rush hour, the law isn't enforced. In cities like Atlanta, where the HOV lane has its own separate exits and is separated a few good feet from other lanes, its total bs, that stupid HOV lane could be two regular lanes, plus you wouldn't need all those ridiculously complex intersections with two different off ramps and two different on ramps.
Trending Topics
#8
Not sure why you are surprised. The local governments will absolutely charge people a tax if the user is not paying their road tax via gas. $100 is just the start, it will increase and increase as the years go by.
Also, mark my words. Electric car users will pay an electricity premium when they connect their electric car at their residence. Not at first, but once demand increases, people who charge their electric car will pay three or four times what it costs them now compared to other things they use in the house.
Upcoming Telsa 3 car owners will not get free supercharging whole Model S owners still will.
Also, mark my words. Electric car users will pay an electricity premium when they connect their electric car at their residence. Not at first, but once demand increases, people who charge their electric car will pay three or four times what it costs them now compared to other things they use in the house.
Upcoming Telsa 3 car owners will not get free supercharging whole Model S owners still will.
That's some good perspective there. Local and state governments give huge tax breaks to big corporations like Nissan for opening facilities in their state/county/city. But give a tax break to normal, middle and lower class citizens, hell no. They don't have lobbyists, the average joe doesn't donate a million dollars for your re-election campaign.
That political rant aside, I do think electric car users should pay a higher registration fee. Maybe much higher, base it on miles driven, as that is how the gas tax works. Just make sure that registration fee goes towards road improvements, not towards trying to prop up a horribly mismanaged state budget or state pension.
Also I think we are going down a very slippery slope if we start raising electric rates for people with electric cars, if we start installing separate meters for their electric car. Keep the same rate, charge them for the amount they use. Its complete bull**** that they would raise the rate on residential customers for using more juice, while the opposite is true for commercial and industrial customers, they give you a rate break at certain usage intervals. I'd also argue that it is unfair if the electric company charges you more to charge your car during the day(peak hours) vs the night when demand is lower. What if you work 2nd or 3rd shift and have an electric car??? Are you just screwed because you work weird hours??? Or suppose you have to drive 100 miles in the morning for some reason, why should you pay an increased rate, because your electric car out of juice and you need to run some errands, pick up the kids, whatever around 4pm that day.
#9
Lexus Fanatic
That's some good perspective there. Local and state governments give huge tax breaks to big corporations like Nissan for opening facilities in their state/county/city. But give a tax break to normal, middle and lower class citizens, hell no. They don't have lobbyists, the average joe doesn't donate a million dollars for your re-election campaign.
That political rant aside, I do think electric car users should pay a higher registration fee. Maybe much higher, base it on miles driven, as that is how the gas tax works. Just make sure that registration fee goes towards road improvements, not towards trying to prop up a horribly mismanaged state budget or state pension.
Also I think we are going down a very slippery slope if we start raising electric rates for people with electric cars, if we start installing separate meters for their electric car. Keep the same rate, charge them for the amount they use. Its complete bull**** that they would raise the rate on residential customers for using more juice, while the opposite is true for commercial and industrial customers, they give you a rate break at certain usage intervals. I'd also argue that it is unfair if the electric company charges you more to charge your car during the day(peak hours) vs the night when demand is lower. What if you work 2nd or 3rd shift and have an electric car??? Are you just screwed because you work weird hours??? Or suppose you have to drive 100 miles in the morning for some reason, why should you pay an increased rate, because your electric car out of juice and you need to run some errands, pick up the kids, whatever around 4pm that day.
That political rant aside, I do think electric car users should pay a higher registration fee. Maybe much higher, base it on miles driven, as that is how the gas tax works. Just make sure that registration fee goes towards road improvements, not towards trying to prop up a horribly mismanaged state budget or state pension.
Also I think we are going down a very slippery slope if we start raising electric rates for people with electric cars, if we start installing separate meters for their electric car. Keep the same rate, charge them for the amount they use. Its complete bull**** that they would raise the rate on residential customers for using more juice, while the opposite is true for commercial and industrial customers, they give you a rate break at certain usage intervals. I'd also argue that it is unfair if the electric company charges you more to charge your car during the day(peak hours) vs the night when demand is lower. What if you work 2nd or 3rd shift and have an electric car??? Are you just screwed because you work weird hours??? Or suppose you have to drive 100 miles in the morning for some reason, why should you pay an increased rate, because your electric car out of juice and you need to run some errands, pick up the kids, whatever around 4pm that day.
#10
Lexus Fanatic
iTrader: (20)
the beatings will continue until morale improves...
#11
Lexus Fanatic
Not sure why you are surprised. The local governments will absolutely charge people a tax if the user is not paying their road tax via gas. $100 is just the start, it will increase and increase as the years go by.
Also, mark my words. Electric car users will pay an electricity premium when they connect their electric car at their residence. Not at first, but once demand increases, people who charge their electric car will pay three or four times what it costs them now compared to other things they use in the house.
Also, mark my words. Electric car users will pay an electricity premium when they connect their electric car at their residence. Not at first, but once demand increases, people who charge their electric car will pay three or four times what it costs them now compared to other things they use in the house.
Last edited by mmarshall; 07-06-17 at 11:20 AM.
#12
1UZFE/2JZGTE
iTrader: (11)
Not surprising as others have stated states are looking to re-coop lost income from gas tax for vehicles that don't use them. Volvo will be going all electric in 2019 that's a percentage of the market that states can re-coop income from since no Volvo owners will ever need gas. I guess they could always increase gas tax instead but more and more drivers will be going all electric vehicles in the coming years.
#13
Lexus Champion
Not surprising as others have stated states are looking to re-coop lost income from gas tax for vehicles that don't use them. Volvo will be going all electric in 2019 that's a percentage of the market that states can re-coop income from since no Volvo owners will ever need gas. I guess they could always increase gas tax instead but more and more drivers will be going all electric vehicles in the coming years.
#14
Pole Position
This would impact me if it were in place today, but I do think it's legitimate and fair to tax electric cars for the reasons cited. I'd support the tax.
Of note, the French just announced their intention to eliminate all gas and diesel engines by 2040.
Of note, the French just announced their intention to eliminate all gas and diesel engines by 2040.
#15
I'm confused, is California being shortsighted at this time? I thought they had a big pollution problem. So the big environmentalist Jerry Brown is calling for taxes on electric vehicles? This will just discourage sales of EV cars as in Georgia and contribute to more pollution in California. This taxation is probably the way to go down the road when EV's are more established but not now. They still need to encourage sales.